This week, I want to expand on the topic of "no money down" investing, which I discussed with Brandon Turner in Monday's interview.
Today I will be discussing wholesaling as a means of no money down investing. The topic is covered very well in Brandon's book, so I suggest you check that out.
Wholesaling as a no money down strategy goes likes this: you find a property, get it under contract with a seller, take that contract and assign it to an investor who is going to presumably flip that property and sell it to an end buyer. When you assign a property to an investor, you get paid an assignment fee, which can be anything you want; you are only restricted by the numbers for the deal. When you go to the investor, you really need to know how much money they're going to need for the rehab and what kind of profit they might want to make to calculate the fee you're going to ask for.
You can do this with little or no money down because you don't need to actually buy a property. Think of the assignment fee as a finder's fee.
The caveat is that it often takes money to find leads and motivated sellers, so you might need to spend a little money on things like direct marketing. It won't be thousands of dollars, but it will be something. There are ways to find leads without spending any money such as driving for dollars, but they will take more time.
Wholesaling a fantastic way to make money in real estate without having to spend money. You will need some knowledge and experience, but you will need little to no money to get started.
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